Parent Companies Liability: Possible Solutions to the Illegal Acts of Their Overseas Subsidiaries

Multinational enterprises (MNEs) have a significant impact on the economy, politics and other aspects of host states. Due to the imbalanced development between countries and profit-oriented capital, the rights and interests of host states and their citizens may be infringed by the illegal acts of MNEs subsidiaries. Although there have been some solutions which are relatively agreed among countries on such cases by now, the specific rules for recognizing liability are still contradictory and uncertain, resulting in victims not being able to receive adequate and effective remedies. Based on this, through researching judicial practices, analyzing specific cases in different countries, and investigating the issue of parent companies liability for the wrongdoings conducted by their overseas subsidiaries, factors for the courts to consider when hearing relevant cases can be identified. Suggestions on the allocation of the burden of proof can also be put forward, aiming to provide a feasible path for host states to enhance protection of the rights and interests of their own countries.